Market News
Canadian dollar posts biggest weekly gain in 23 months - REUTERS
By Fergal Smith
Summary
- Canadian dollar gains 0.2% against the greenback
- For the week, the loonie advances 1.7>#/li###
- Canada adds 76,000 jobs in January
- Bond yields climb across the curve
TORONTO, Feb 7 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Friday, adding to its weekly gain, as stronger-than-expected domestic jobs data kept expectations in check for another Bank of Canada interest rate cut in March.
The loonie was trading 0.1% higher at 1.4288 per U.S. dollar, or 69.99 U.S. cents, after moving in a range of 1.4274 to 1.4345.
For the week, the currency was up 1.7%, its biggest weekly advance since March 2023, after Canada escaped the immediate implementation of U.S. trade tariffs.
Canada's economy added 76,000 jobs in January, eclipsing expectations for a gain of 25,000, and the unemployment rate unexpectedly dipped to 6.6%.
"On paper, this lowers the odds of the Bank of Canada cutting interest rates again at its March meeting," Thomas Ryan, North America economist at Capital Economics, said in a note.
"But, with tariffs still scheduled to take effect next month, we remain of the view the Bank will err on the dovish side of caution and reduce the policy rate by a further 25 bp (basis points)."
